INVESTIGATING THE IMPACT OF MOBILE MONEY ON CUSTOMERS ATTITUDE IN SMALL BUSINESSES IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the Study

There has been advancement in electronic banking and financial services in developing countries, giving diverse people easy access to these services via ATMs, internet banking, and mobile banking, among other channels provided by banks (Chukwumah, 2017). However, a sizable fraction of the rural population does not have a bank account, which restricts their ability to utilise financial services (Financial Inclusion Insights, 2021). Mobile money services are seen as a workable way to combat financial exclusion throughout Africa, particularly Cameroon, given the quick growth of cell phone coverage and usage (Akingbade et al., 2020). Similarly, mobile money is a service that uses Information and Communication Technology (ICT) and non-bank channels to extend the delivery of financial services to clients who cannot be reached profitably with traditional branch-based financial services (Alhassan and Yeboah (2021). According to Pouttchi et al. (2004), the popularity of mobile phones has made it possible for people to conduct financial transactions on them. However, Birch et al. (2018), Saunders (2020), and Mas et al. (2021) contend that recent advancements in mobile technology have further expanded small businesses  and opened up opportunities for those who would otherwise not have access to its services. Furthermore, Munyoro and Matinde (2018), asserts that the growth of mobile services/commerce, particularly mobile money transfers, has been made possible by the convergence of banking and telecoms services. As of early 2008, 47% of eligible adult Cameroonians were not part of the formal financial system, according to the  Bank Of Central African States (BEAC). Meanwhile, the number of active mobile phone lines exceeded the number of bank account holders (NCC, 2018), suggesting that mobile money services could flourish in underserved areas. In addition to bringing in a new way of life for money handling, the introduction of mobile money services to Cameroon in 2008 also increased the number of financial transactions for many reasons. The service offers a wide range of applications and satisfactions, and its operators, businesses, and private persons all benefit from it in different ways. While Express Union launched Mobile Money services in Cameroon in 2008, 2010 saw the introduction of MTN Mobile Money by MTN Cameroon following the launch of Express Union Mobile. On the other hans, Orange Cameroun entered the digital market in 2011 with Orange Money, a year later. Later, in 2012, Société Générale du Cameroon (SGC) introduced Monifone. A little further, in Cameroon, there were approximately 1.5 million active users and 6.8 million MM customers as of right now. By the end of June 2016, MTN Mobile Money had registered 2.4 million users with approximately 220,000 active accounts. In comparison, Orange Money had registered 2.2 million users with 200,000 active accounts by December 2015, and Express Union Mobile had registered 500,000 users with 300,000 active accounts. However, previous studies (Abdinoor & Mbamba, 2019; Kithinji & Gekara, 2018; NoorKhan, 2021) have found a number of reasons that contribute to the low user acceptance of mobile money services, including trust, privacy, security, and lack of understanding. Increased and positive attitude of consumer towards enrollment on mobile money networks is crucial to meeting financial inclusion targets. Therefore, a survey will be conducted to investigate the impact of mobile money on customers attitude in small businesses in Cameroon.

Statement of the Problem

It's reasonable to argue that mobile money technology has upended the sub-Saharan African business industry and spurred social and economic change in many of these nations, most notably Cameroon. As proof, consider the fact that in 2021 there were 548 million registered mobile money users in sub-Saharan Africa, a 12% growth from the previous year, with a transaction value of US$490 billion and a volume of 27.4 billion transactions (Talom & Tengeh, 2019). Small businesses in Cameroon have shown a clear benefit from the usage of mobile money payment and receipt services, which have been shown to account for almost 73% of the variance in business' turnover in Douala after they started using the technology (Bakary, 2021). However, according to the 2019 GSMA Mobile Connectivity Index, 96% of Cameroon's population is connected to a mobile GSM network (3G and higher). Cameroon is therefore a strong contender to employ mobile money to hasten financial inclusion. Having a mobile money account in Cameroon has a big impact on how easy it is for consumers to obtain financial services (Koloseni, 2017). On the other hand, the security of mobile money is seriously threatened by cyberattacks. For example, in 2017, businesses in Africa were estimated to lose $140 million annually due to cybercrime involving mobile-based transactions (Bakary, 2021). The National Agency of Telecommunication (NAT) in Cameroon estimated that bank attacks and mobile money losses totaled 6 billion Fcfa in 2019 alone, and the losses are still rising. However, prior reports have shown us that companies in West and Central Africa typically lack a thorough understanding of the cybersecurity skills gaps they may have as well as the security threats associated with the technologies they use (Noel, 2019). Due to the critical significance of mobile money to small business owners in Cameroon. It is in the light of these that the study seeks to investigate the impact of mobile money on customers attitude in small businesses in Cameroon.

 1.3  Objectives of the Study

The main purpose of this study is to investigate the impact of mobile money on customers attitude in small businesses in Cameroon. Specifically, the study will;

Assess the adoption level of mobile money services among small businesses in Cameroon.

Examine the factors influencing customers' attitudes towards using mobile money for transactions in small businesses.

Investigate the challenges of using mobile money among customers in small businesses in Cameroon

1.4 Research Questions

The following questions have been prepared for the study:

What is the adoption level of mobile money services among small businesses in Cameroon?

What are the factors influencing customers' attitudes towards using mobile money for transactions in small businesses?

What are the challenges of using mobile money among customers in small businesses in Cameroon?

1.5 Research Hypotheses

Ho: There is no significant impact of mobile money on customers attitude in small businesses in Cameroon.

Ha: There is a significant impact of mobile money on customers attitude in small businesses in Cameroon.

1.6  Significance of the Study

The research findings will offer small business owners and customers in Cameroon insights into the advantages of implementing and utilising mobile money services. Additionally, this will assist financial institutions in adapting services to cater to the distinct requirements of various user segments, hence promoting increased empowerment and economic resilience. By offering accessible, reliable, and cost-effective financial options, we aim to promote increased self-reliance and financial stability. Moreover, the study will aid in identifying specific areas where enhancements, new strategies, and tailored services can be implemented to effectively cater to the requirements of customers in Cameroon. Furthermore, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the impact of mobile money on customers attitude in small businesses in Cameroon.

1.7 Scope of the study

The scope of this study is boarded on the impact of mobile money on customers attitude in small businesses in Cameroon. Empirically, this study will determine acceptability level of mobile money among customers attitude in small businesses in Cameroon, determine whether the adoption of mobile money influences customers attitude in small businesses in Cameroon and whether  mobile money impact customers attitude in small businesses in Cameroon.

Geographically, the study will be delimited to resident of Imo state, Nigeria.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Mobile money: a digital financial service that allows users to perform various financial transactions using their mobile devices, such as smartphones or basic feature phones.

Consumer: is an individual or entity that purchases goods or services for personal use or consumption.